“Alabama Incentives Modernization Act” passed by state legislature
The Alabama legislature has passed the “Alabama Incentives Modernization Act” Wednesday to update the state’s incentives to take advantage of federal opportunity zones, recruit businesses to rural counties and attract technology companies to the state.
Among other items, the law eliminates the tax on capital gains for investors and employees of technology companies that move to Alabama with the caveat that the companies must: (1) relocate to the state at least three years before being sold, and (2) stay in Alabama five years after the company is sold. The same restriction applies for the company’s employees to realize zero capital gains tax. For investors, the break on capital gains tax only occurs if the investors reinvest the funds in other Alabama companies for the following five years. To learn more, click here.
